We get ripped off because the world is
becoming an increasingly perilous place financially, but also because we allow
ourselves to be conned out of our cash. Don’t worry - it’s never too late to
change basic human nature

The answer to the question: ‘Why do we get ripped off?’ can
appear simple. The world seems to be filling up with financial cowboys, cynical
retailers and suspect service providers who use a growing array of dubious
practices to part us from our cash.

Any journey down the high street is a master class in
highly sophisticated and sometimes morally suspect marketing techniques.

Everything from financial products to consumer durables
are increasingly complicated, making choosing between options ever harder.

Traditional sources of impartial (if limited) advice
are almost extinct. The smartly dressed bank official talking to you about
refinancing your home loan may well have their salary linked to commission. Not
something an old style bank manager had to worry about.

This new world is
full of cowboys and every single one of them is after your horse. This is borne
out by the facts and figures. Complaints to the Financial Ombudsman Service went up 75% in
3 months. Mobile phone
regulator Ofcom announces a review into terms and conditions that allow price
increases during a ‘fixed’ contract. The Chancellor takes banks to task over
their failure to ring fence investments from high street banking. And that’s
just one month’s headlines.

Do we allow rip-offs to happen?

There’s
plenty of evidence that it’s a jungle out there but we’re not without blame in
all this. To quote a Money Fight Club motto: In a world full of sabre tooth tigers you shouldn’t leave home without
your club.

To
understand the ‘why’ a little better it’s worth looking at some of the
psychology. There are two major points worth making here.

Human beings
have a desire to trust their fellow man.For example, you’d never manage to make it into a flow of traffic on a
busy roundabout if you didn’t trust you fellow motorist to give way
appropriately.

It’s easier to be lazy.Saving energy is a cave man instinct. It’s
much easier to let someone else do the work. So if the person in the smart suit
tells you to buy this phone or that loan - who are we to argue?

As well as
‘trust bias’ and ‘cognitive laziness’ he also mentioned the ‘norm of
reciprocity’ and the strong human inclination to pay someone back if they do us
a favour. Have you ever wondered why you
get offered everything from pens to carriage clocks just by applying for
financial product?

In her book,
The Ponzi Scheme Puzzle - A history and analysis of con artists and victims*,
Tamar Frankel at the Boston University of Law points out that warning people
about con artists and scams doesn’t seem to make that much difference. What we
need to do is recognise: “the subtle signals that mimic truth and honesty”,
which con artists use to play to our own vulnerability.

(* A Ponzi scheme is a
fraudulent investment that entices in new money by offering impressive returns.
In fact the money is not invested, funds are misappropriated and the scheme
eventually collapses. They’re named after Charles Ponzi,who came up
with the idea back in the 1920s.)

So, what makes a money fighter?

The good
news is we all have the ability to become money fighters. We just need to tap
into the survivor instincts that kept our ancient ancestors alive and to stop
assuming that just because today’s tyrannosaurs wear suits they have our best
interests at heart.

Most critically
- we need to be wary. It's ok to trust people we know well but should we trust a
stranger who just dresses smartly or works in a bank? If something doesn't sound
right, investigate. Ask questions. Look for evidence.

It’s also
important not to get distracted by the small print, the free gifts, or the
pleasant banter about the weather or our families.

Ultimately,
we need to be prepared to tough it out. Ask questions and then more questions.
If you don’t like the answers - ask some more. If you don’t understand the
waffle or techno-speak get the organisations you're pitting yourself against to
go over it again, and again, and again. Sometimes
you win because you pack a bigger punch. Sometimes you win because you wear
your opponent down.

Take your time and stay in
control. It’s better to miss a deal than snap one up and regret it. If you’re
in the market for a new conservatory, do your research - don’t just opt for the
company whose literature just happens to drop on your door mat at that time, or
whose advert in the local paper catches your eye. By all means accept
recommendations from reliable friends - but do you own homework as well.

Are you Money Fight Club fit -
take the mini test below

Answer ‘Never’, ‘Sometimes’ or
‘Always’ to the following statements.

Q1.
You always check till receipts and get mistakes corrected.

Q2.
You take time to read any small print before you sign something.

Q3.
You ask questions and more questions until you understand something completely.

Q4.
If you believe you are in the right you’ll fight until you get what you
deserve.

How did you do?

Count up how
many times you said ‘Never’, or ‘Sometimes’ or ‘Always’.

More ‘Always’ responses: You already understand a lot of the Fight
Club basics and probably carry a few battle scars to prove it. But now’s the
time to raise your game.

More ‘Sometimes’ responses: Chances are the recent headlines around
financial mis-selling and retail scams have put you on your mettle. But there’s
still more you can do.

More ‘Never’ responses: You have a tendency to accept things at
first glance and assume they’re right. You need to prioritise.

You can find the
complete version of this test, which includes more detailed feedback, in the Money Fight Club book.

So, in practice, what
does fighting back boil down to? Here’s a quick 1.,2.,3. (Or Biff, bash, bosh,
as we like to say.)

At a practical level when you buy a product or service
you’re buying a product or service - not looking for a new friend.
Conversations about the weather,
or your family, just
distract and create an emotional bond that can cloud decision making. Be on
your guard.

You don’t owe the seller of any goods or services
anything and certainly you don’t owe them for the Parker pen, stylish carriage
clock or prize draw that seems to be part of the deal.

Do the home work. Wade through the jargon and small
print. Use the internet and suck it dry for peer reviews and ombudsman rulings.
Take nobody’s word that it’s the right product for you. And if you’re sold a
dud fight for your rights with every last ounce of energy.

Now, here’s your club
- go hunt yourself a sabre tooth.

This article was
written by Anne Caborn, co-founder of Money
Fight Club, which shows you revolutionary tactics and techniques
for
battles with supermarkets, banks, utilities, mobile phone
companies... Don’t get angry - get even. Find out more on their
website
[http://moneyfightclub.com/]

1 comment:

Is your monies safe in these accounts ---- definitely NOT.Would you get your money back if every body decided to withdraw all their accounts – NO WAY.Economic Experts say that there would only enough money to repay 50% of their clients.Are you going to be in the 50% --- that loose your money.-- Get it out NOW.

2012 -- - June. -- Published in Anglo INFO .Geneva.--- USA Trust Fund Investors were sent false and fraudulent documents by Pictet Bank.Switzerland. in order to collect large fees. ( Like MADOFF) ---Even after the SEC in the USA uncovered the fraud Pictet continued to charge fees and drain whatever was left in these accounts. Estimated that $90,000,000 million lost in this Pictet Ponzi scheme.

2012 - - - July. -- De – Spiegel. -- states – Pictet Bank uses a letterbox company in Panama and a tax loophole involving investments in London to gainGerman millionaires as clients.

All the fines that crooked Swiss banks have incurred in the last few years exceeds £75.Billion. It is also calculated that the secrecy " agreements" with regards to tax evation by their clients will cost the banks another £450 Billion.( paid out of your monies.)

The banks are panicking --- the are quickly restructuring their banks ---- from partnerships --to " LIMITED COMPANIES." ----- this will probably mean that in the future --- they could pay you only 10% of your monies " if you are one of the lucky ones" ---- and it be legal.